Oneok, Inc. · NYSE:OKE

Oneok — Q1 2018 Earnings Presentation

12 slides from Oneok's earnings presentation, May 1, 2018

  1. Slide 1: First-Quarter 2018 Results

    F I R S T- Q U A R T E R 2 0 1 8 R E S U LT S May 1, 2018

  2. Slide 2: Forward-Looking Statements

    FORWARD -LOOKING STATEMENTS Statements contained in this presentation that include company expectations or predictions should be considered forward-looking statements that are covered by the safe harbor protections provided under federal securities legislation and other applicable laws. It is import

  3. Slide 3: Index

    INDEX FINANCIAL STRENGTH 4 NATURAL GAS LIQUIDS 5 NATURAL GAS GATHERING AND PROCESSING 6 NATURAL GAS PIPELINES 7 FIRST-QUARTER 2018 VS. FOURTH-QUARTER 2017 SEGMENT VARIANCES 8 2018 FINANCIAL GUIDANCE 9 NON-GAAP RECONCILIATIONS 10 Mont Belvieu I fractionator — Gulf Coast

  4. Slide 4: Financial Strength

    FINANCIAL STRENGTH INCREASING EXCESS CASH AND IMPROVED LEVERAGE METRICS ◆ Continued growth since Q2 2017: Adjusted EBITDA Growth  78% increase in DCF in excess of dividends ($ in millions)  23% increase in adjusted EBITDA $570.3 ◆ Adjusted EBITDA growth driving increased DCF in excess of dividends

  5. Slide 5: Natural Gas Liquids

    NATURAL GAS LIQUIDS VOLUME UPDATE ◆ 2018 volume growth expected to be driven primarily by increased producer activity in G a t h e r e d Vo l u m e ( M B b l / d ) the STACK and SCOOP areas and increased ethane recovery in the Mid-Continent  First quarter 2018 volumes impacted due to seasonal weath

  6. Slide 6: Natural Gas Gathering and Processing

    NATURAL GAS GATHERING AND PROCESSING VOLUME UPDATE G a t h e r e d Vo l u m e s ( M M c f / d ) Mid-Continent 1,840 – 2,050 ◆ Increased producer activity in the STACK and SCOOP areas expected to be largest 1,524 1,561 1,680 driver of 2018 natural gas volume growth 965-1,075 ◆ Expect to connect appro

  7. Slide 7: Natural Gas Pipelines

    NATURAL GAS PIPELINES WELL-POSITIONED AND MARKET-CONNECTED N a t u r a l G a s Tr a n s p o r t a t i o n Capacity Contracted (MDth/d) ◆ Expect more than 95 percent fee-based earnings in 2018, and:  Approximately 95 percent of transportation capacity contracted  Approximately 65 percent of natural

  8. Slide 8: Business Segment Performance

    BUSINESS SEGMENT PERFORMANCE Q1 2018 VS. Q4 2017 ADJUSTED EBITDA VARIANCES ◆ Natural gas liquids increased  $25.9 million increase in optimization and marketing due primarily to wider location price differentials and the sale of NGL inventory previously held  $14.5 million increase due to lower op

  9. Slide 9: 2018 Financial Guidance Summary

    2018 FINANCIAL GUIDANCE SUMMARY D ivid en d s Paid Per Sh are Per Year ◆ Adjusted EBITDA: $2,215 million – $2,415 million $3.25 - $3.31 ◆ Distributable cash flow: $1,615 million – $1,815 million $2.43 $2.46 $2.72 $2.13  Target dividend coverage ratio of ≥1.2 times ◆ Net income: $955 million – $1,15

  10. Slide 10: Non-GAAP Reconciliation

    NON-GAAP RECONCILIATION ANNOUNCED JAN. 22, 2018 2018 Guidance Range (Millions of dollars) Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow Net Income $ 955 - $ 1,155 Interest expense, net of capitalized interest 495 - 455 Depreciation and amortization 425 - 435 Income taxe

  11. Slide 11: Non-GAAP Reconciliation

    NON-GAAP RECONCILIATION ANNOUNCED JAN. 22, 2018 2018 Guidance Range (Millions of dollars) Reconciliation of segment adjusted EBITDA to adjusted EBITDA Segment adjusted EBITDA: Natural Gas Liquids $ 1,300 - $ 1,430 Natural Gas Gathering and Processing 575 - 625 Natural Gas Pipelines 335 - 355 Other 5

  12. Slide 12: Bear Creek plant — Williston Basin

    Bear Creek plant — Williston Basin

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